The Daily bulletin. [volume] (Honolulu [Hawaii]) 1882-1895, 1887-07-02

for this good and sufficient reason,
that this English bond is not in ac-
cordance with law. 1t is made pay
able, principal and interest, in
pounds sterling at London. The
Loan Act provides that the bonds
shall be made payable, principal and
interest, in American gold coin.
This, therefore, is fatal defect in
the bonds even had they been pre-
pared by authority of the Govern
ment, and we call upon the Minis
ter of Finance and Registrar of Fab
lie Accounts to refuse to accept or
sign the bonds and coupons. If
they sign them without an order
from the Supreme Court, they rem
der themselves liable to impeach-
ment and punishment. These
gentlemen, however, may be trusted
not to violate the law at the request
or bidding of any one, high or low.
And this brings us to a considera-
ton of that Loan itself as placed in
England. The entire procedure
was illegal. Matheson & Co., BAN
kers, c''led for tenders for loan
of $1,000, payable principal and
interest at London in sterling money,
under authority of an Act of the
Hawaiian Legislature, approved
October 10Th, 1886. Doubtless
this was done in good faith by the
Bankers, but the financial agents of
the Government who had the Act
in their hands knew that such a loan
was not in terms of the law and was
therefore deceptive. The law, ex-
pressly STIMULATES that the loan shall
be for 50, 100000 in American gold
coin of the present standard, or its
equivalent, interest and principal to
be paid in the same coin
of like standard. But 100000
is not the equivalent of 100000
as the loan agents assume, the
American mint value of English
gold as fixed by the United States
Treasury, being $4.S4 for each
sovereign of full weight. The equi-
valent of American gold coin of the
present standard in sterling money
is therefore to be calculated at S4.S4
and not S.. In other words there
is loss of 16 cents upon each
sovereign, Or $32, 900 ON 100000.
Who is to bear this loss, principal
and interest; the country or the
loan agents?
Furthermore, the Loan Act pro-
vides that the conversion and re-
demption of bonds should be at the
Hawaiian Treasury, and this has
been done to measurable extent;
but the Financial Agents and Syndi-
cate have taken upon themselves
to speculate in half million Ha-
waiian bonds held by Col. Spreckels
in San Francisco, with money placed
by them in the Bank of California
to the credit of the Hawaiian Gov
eminent. 1t is very clear that the
Hawaiian Government has not re-
deemed the Spreckels Bonds as con-
templated by law, and it is a very
serious question whether this trans
action should not be regarded as
entirely private one between the
London syndicate and the bond
holder. There is nothing to prevent
these selfsame bonds being pre-
scented at the Hawaiian Treasury for
redemption in United States gold
coin by their present holders, and
therefore the present Ministry should
be very cautious about assuming
any financial liability under the
Loan proceedings of their predeces-
sors.
Certain it is that the clrcum-
stances call for prudent manage
ment. The Treasury is empty, and
there is only the balance of the last
loan remittance available for any
purpose. The Government has re-
ceived, in two instruments from
London, via San Francisco, $294,-
500, but it is paying interest upon
million dollars, while the manipu-
lators of the loan have been handl-
ing the balance without reference to
the provisions of the Loan Act.
Such condition of things is intoler-
able. Let it be speedily cleared up.
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